Ep.104: Marvin Germo: Investing in PH and USA

Sean

Where does a super-rich guy like Marvin Germo put his money to grow? What are your investments? 

Marvin

I'll say stocks. I'll say businesses. I'll say some because say our investments better. They're not for growing. They're for cashflow. So if you want growth right now, it's it should be stocks.

You have to be very selective. I'd say I'm more bullish now on the US economy than in the Philippines, particularly US tech stocks, particularly, or pharmacy-related stocks. In the Philippines, I don’t know yet. I’m quite unsure about the Philippine economy. I know it will recover. It may take some time. So you either buy stocks that are thriving today, Puregold, Telcos, PLDT, Globe

If you've seen their movements since March, it’s very very attractive-- including the stocks that have dividends. But If you want the position, you can buy stocks that I think will do well when the Coronavirus disappears. While you're waiting, since most of the stocks might be affected, there might be volatility. Stock values might decrease and slow down. You just follow where the money's going. The money over the past months has been going to the US markets because the Feds has been pumping in money. Other notable ones include Gold or Bitcoin. So choose any around them.

In the Philippines, it's not that question. Of whether or not it will recover. It will, however, It’s going to take a long time. I know that things will get better, but based on what's going on, unemployment is so high. So I think those are things that need to be addressed first before we see some signs of recovery.

If I'll answer it into two things, either you start a business or you invest in stocks because that’s what I know. I know a lot of people who are good at ForEx and Bitcoin because that is what they know. I think the answer to that question is not which one looks better, but where you are personally good at. So that's the best way to answer it.

Sean

Now that you're trading more of US stocks, and they also yield dividends, right?

Marvin

To clarify, I'm still trading both. I am just more bullish on US stocks than Philippine stocks. This means I have a hand at both. For example, I have a peso in the Philippines and a peso in the States. That peso is there. It’s just that peso can be the majority in cash. I do not pull out. 

Most likely, If there are fresh funds, I will allocate more to the US than to the Philippines. However, The funds I have allocated to the Philippines, I am not taking out because the state of the market will increase again in the future.

It comes down to whether or not the cost of waiting is worth it. Will you earn more than if you were to position to other stocks? I'll give you an example. To be honest, I was surprised. I didn't expect Facebook to be like this. I didn't expect Amazon to be like this. But even then, they're not at the levels of where Tesla is right now. It’s Insane. It’s like there wasn’t any recession that happened in the US.

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